These are America’s 10 cheapest states to live in 

Federal Reserve Chairman Kevin Warsh, who wanted to get to the point in his new position, did exactly that in his first term. press conference as president on June 17.

“Persistently high prices are a burden on the American people,” he said.

But one thing he misses about inflation across the country is that some states are much less burdened by prices than others.

Cost of living is an important consideration when companies decide where to do business. The low cost of living may help them attract workers. This also means they can pay them less and save on wage costs.

That’s why CNBC lists Cost of Living as one of ten competitiveness categories in its 20th anniversary of America’s Best States for Business.

Here’s how we rank states: index Prices for a wide range of products and services calculated by the Community and Economic Research Council. We also consider the affordability of housing for both homeowners and renters. As the insurance crisis continues across the country, we measure the cost of insuring an average-priced home based on the most current data available. According to this year’s methodology, Cost of Living is worth 2% of each state’s total score.

Some states are much more expensive than others, but life in the following states is a bargain.

These are America’s cheapest states in 2026 and the average prices of some essential items in major metro areas.

Missouri

Show me rental listings in Missouri and I’ll show you cheap prices. The average rent for a three-bedroom home in the Show-Me State last year was just $1,582, according to ATTOM Data Solutions. This is the fifth-lowest income in the nation as a percentage of median income and is only half what you would pay in New Jersey.

Housing isn’t the only thing that’s cheap. According to C2ER, a head of lettuce will cost 12% less in Joplin than in New York. But the one thing that is non-negotiable is insurance. Including severe storms St. Hurricane in and around St. Louis Events that killed at least four people and caused $1.6 billion in damage last year are driving up insurance costs. Insurance projects predict premiums in Missouri, already the 13th highest in the nation, will rise another 7 percent this year.

2026 Cost of Living score: 34 out of 50 (Best State grade: B+)

Consumer Price Index (May, Midwest Region, year over year): +5%

Average rent (3-bedroom house): $1,582

Average house price (Springfield): $478,702

Monthly energy bill: $149.83

dozen eggs (Q1 2026): $3.22

a loaf of bread (Q1 2026): $3.39

Ohio

Your money goes further in Ohio, which has some of the nation’s lowest costs of living in addition to the lowest operating costs. That’s a big reason why the Buckeye State is America’s Best State for Business in 2026. Cleveland stands out when it comes to affordable housing, with an average price just over a third of Boston’s. The statewide median rent as a percentage of median income is the fourth lowest in the nation.

2026 Cost of Living score: 35 out of 50 (Best State grade: A–)

Consumer Price Index (May, Midwest Region): +5%

Average rent (3-bedroom house): $1,565

Average house price (Cleveland): $388,116

Monthly energy bill: $188.39

Dozen eggs: $4.29

Loaf of bread: $3.72

in kansas

Watch your money grow in Kansas, where a 64-ounce bottle of cooking oil in Salina will cost you about 10% less than in Chicago. Housing costs in the Sunflower State are the third-lowest in the country, but like many of its neighbors in the Midwest, insurance costs rise with the onset of severe storms, summer heat and winter cold. Homeowners’ premiums were the 10th highest in the country last year, with a projected increase of 4% this year.

2026 Cost of Living score: 36 out of 50 (Best State grade: A–)

Consumer Price Index (May, Midwest Region): +5%

Average rent (3-bedroom house): $1,538

Average house price (Salina): $348,000

Monthly energy bill: $223.04

Dozen eggs: $3.87

Loaf of bread: $3.63

Iowa

If you make your home in Iowa, you’ll have plenty of money to spend. Rents as a percentage of median income are the second lowest in the nation (after Michigan). But you may want to buy it instead. The Hawkeye State’s housing is among the most affordable in the country. But Iowa is also in the midst of an insurance crisis, six years after an echo caused more than $11 billion in damage across the Midwest, worst in Eastern Iowa.

2026 Cost of Living score: 36 out of 50 (Best State grade: A–)

Consumer Price Index (May, Midwest Region): +5%

Average rent (3-bedroom house): $1,580

Average house price (Burlington): $331,200

Monthly energy bill: $205.61

Dozen eggs: $3.63

Loaf of bread: $3.63

indiana

Drive through Indiana, the Crossroads of America, and enjoy savings. Even at the start of the Iran war in the first quarter of this year, gasoline was selling for $2.82 a gallon in Richmond, Indiana, according to C2ER. Getting a set of tires balanced in Kokomo will cost you roughly half what it would in Conway, Arkansas.

2026 Cost of Living score: 36 out of 50 (Best State grade: A–)

Consumer Price Index (May, Midwest Region): +5%

Average rent (3-bedroom house): $1,711

Average house price (Kokomo): $293,267

Monthly energy bill: $197.80

Dozen eggs: $3.92

Loaf of bread: $3.53

wyoming

For now, Wyoming has managed to contain the insurance crisis. Premiums for homeowners in the Cowboy State are lowest at $1,929 annually, the 16th lowest premium in the nation. Perhaps more importantly, they are not expected to increase at all this year. However, other parts of Wyoming have seen some inflation. Food prices are rising, although not out of control. Meanwhile, you can rent an apartment in Laramie for about a third of what you can in Arlington, Virginia.

2026 Cost of Living score: 37 out of 50 (Best State grade: A–)

Consumer Price Index (May, West Region): +3.5%

Average rent (3-bedroom house): $1,791

Average house price (Laramie): $449,444

Monthly energy bill: $208.17

Dozen eggs: $3.28

Loaf of bread: $4.29

south dakota

South Dakota homeowners need ATTOM Data Solutions and US Census numbers. Buying a home in Pierre will cost you about 25% less than in Miami. Prefer to rent? Rental costs are in the bottom 10 in the country. Insurance projects predict that homeowners’ insurance premiums, which are currently roughly in the middle of the pack nationally, will rise just 1% this year.

2026 Cost of Living score: 38 out of 50 (Best State grade: A)

Consumer Price Index (May, Midwest Region): +5%

Average rent (3-bedroom house): $1,785

Average house price (Pierre): $474,200

Monthly energy bill: $175.72

Dozen eggs: $3.28

Loaf of bread: $3.82

Alabama

Alabama is known as the Yellowhammer State and is named after the state bird, a woodpecker also called the Northern Vibrator. There’s another thing that’s yellow here: The cheap one here is the banana. You’ll pay 20% less per pound in Decatur than you would in Orange County, California. Whether you own or rent your sweet home, prices are reasonable. Rents rank as the 10th lowest in the nation as a percentage of median income. The average price of a home in Anniston is about half that in Phoenix.

2026 Cost of Living score: 38 out of 50 (Best State grade: A)

Consumer Price Index (May, Southern Region): +3.9%

Average rent (3-bedroom house): $1,542

Average house price (Anniston): $284,340

Monthly energy bill: $239.21

Dozen eggs: $4.72

Loaf of bread: $3.80

north dakota

North Dakota gets its nickname, the Peace Garden State, from the International Peace Garden. It spans the US-Canada border in the Turtle Mountains, established in 1932, when the US and Canada were in slightly better shape. If you want a garden that gives you a little something extra, this state offers some of the most affordable housing in the country. A newly built, four-bedroom home in Bismarck with space to plant your own garden will cost less than half the cost of a similar home in Bozeman, Montana. How about a nice pair of comfortable trousers to wear while tending to your flower beds? They will cost you almost a third less than in Asheville, North Carolina.

2026 Cost of Living score: 41 out of 50 (Best State grade: A+)

Consumer Price Index (May, Midwest Region): +5%

Average rent (3-bedroom house): $1,908

Average house price (Bismarck): $378,598

Monthly energy bill: $157.22

Dozen eggs: $3.27

Loaf of bread: $3.83

America’s cheapest state in 2026: West Virginia

Here in West Virginia, your monthly housing costs are pretty much heaven. About 81% of people in the Mountain State pay less than a third of their monthly income on housing. This is the best figure of any state. Insurance premiums are also among the lowest in the country. Buying a home in Charleston will cost you one-fifth the price of a similar place in Seattle. You’ll also like your grocery bill. A bag of frozen sweet peas costs about 30% less than in Arlington, Virginia. And filling up your gas tank on the way to the grocery store will cost you half the price in Los Angeles.

2026 Cost of Living score: 43 out of 50 (Best State grade: A+)

Consumer Price Index (May, Southern Region): +3.9%

Average rent (3-bedroom house): $1,726

Average house price (Charleston): $274,429

Monthly energy bill: $190.36

Dozen eggs: $3.98

Loaf of bread: $3.68